| Thu 28 Feb 2002, 0:00 | | Integrear Limited - Unaudited Interim Results |
|
Integrear Limited
Unaudited Interim Results for the six months ended 31 December 2001
("Integrear" or "the group")
Registration number 1989/001319/06
Share code: ITG ISIN number: ZAE000027231
INCOME STATEMENT
Unaudited Restated* Unaudited Audited
Six months ended Year ended
31 Dec 31 Dec 31 Dec 30 June
2001 2000 2000 2001
R'000 R'000 R'000 R'000
Revenue 8 517 6 274 8 304 10 614
Cost of sales (4 158) (2 828) (4 009) (5 905)
Gross profit 4 359 3 446 4 295 4 709
Operating expenses (3 241) (2 536) (2 536) (3 970)
Profit from operations 1 118 910 1 759 739
Finance costs (143) - - (15)
Profit on disposal
of subsidiaries - - - 721
Goodwill amortised (240) (270) (270) -
Income from investments 260 128 128 325
Profit before taxation 995 768 1 617 1 770
Income tax expense (317) (230) (558) (372)
Net profit for the year 678 538 1 059 1 398
Earnings per share
Basic earnings per
share (cents)** 5,40 4,28 8,43 11,13
Headline earnings per
share (cents)*** 7,31 6,43 10,58 5,38
*The unaudited 31 December 2000 financial results of the group has been
restated to reflect the correct accounting for deferred revenues and costs,
in terms of South African Statements of Generally Accepted Accounting
Practice AC 111, as reflected in the audited financial position of the group
at 30 June 2001.
**Basic earnings per share is calculated based on net profit of R678 000
divided by the number of shares in issue being 12 564 190 x 100.
***Headline earnings per share is calculated based on net profit of R678 000
adjusted by the amortisation of goodwill of R240 000 divided by the number
of shares in issue being
12 564 190 x 100.
CASH FLOW STATEMENT
Unaudited Audited
Six months ended Year ended
31 December 30 June
2001 2000 2001
R'000 R'000 R'000
Operating activities
Cash receipts from customers 7 106 8 690 14 526
Cash paid to suppliers
and employees (7 509) (7 465) (9 242)
Cash (used in)/from operations (403) 1 225 5 284
Interest paid (143) - (15)
Dividends paid - - (205)
Interest received 260 128 325
Taxation paid (53) (933) (1 155)
Net cash (used in)/from
operating activities (339) 420 4 234
Investing activities
Purchases of equipment (21) (52) (108)
Proceeds on disposal of equipment - - 11
Proceeds on disposal of investment - (620) -
Acquisition of Integrear - 2 186 -
Receipts from Y2 debtors - 1 699 -
Decrease/(Increase) in
loans receivable - - (1 998)
Reverse acquisition of subsidiary - - 3 712
Acquisition of subsidiaries 21 - -
Net cash from investing activities 0 3 213 1 617
Financing activities
Share capital reduction - (3 586) (3 586)
JSE listing expenses paid - (955) (982)
Decrease in borrowings (21) (17) (802)
Net cash used in
financing activities (21) (4 558) (5 370)
Net (decrease)/increase in cash and
cash equivalents (360) (925) 481
Cash and cash equivalents
at beginning of the period 2 570 4 332 2 089
Cash and cash equivalents at
end of the period 2 210 3 407 2 570
BALANCE SHEET
Unaudited Restated* Unaudited Audited
31 Dec 31 Dec 31 Dec 30 June
2001 2000 2000 2001
R'000 R'000 R'000 R'000
Assets
Non-current assets 1 703 428 5 561 2 176
Equipment 335 341 341 302
Goodwill 1 201 - 5 133 -
Deferred tax asset 167 87 87 167
Loans receivable - - - 1 707
Current assets 4 661 3 583 5 613 3 215
Trade and other
receivables 2 451 176 2 206 645
Bank balances and cash 2 210 3 407 3 407 2 570
TOTAL ASSETS 6 364 4 011 11 174 5 391
Equity and liabilities
Capital and reserves 4 310 2 772 9 445 3 632
Share capital 126 126 126 126
Share premium 686 686 8 212 686
Non-distributable reserves 828 828 - 828
Capital redemption fund 48 48 48 48
Accumulated profits 2 622 1 084 1 059 1 944
Non-current liabilities
Long-term borrowings 50 49 49 63
Current liabilities 2 004 1 190 1 680 1 696
Trade and other payables 1 652 1 135 1 297 1 600
Short-term borrowings 33 24 24 41
Taxation liability 319 31 359 55
TOTAL EQUITY AND LIABILITIES 6 364 4 011 11 174 5 391
*The unaudited 31 December 2000 financial position of the group has been
restated to reflect the reverse acquisition of Integrear Limited on 27
November 2000 and the correct accounting for deferred revenues and expenses,
in terms of South African Statements of Generally Accepted Accounting
Practice AC 111 and AC 131, as reflected in the audited financial position
of the group at 30 June 2001.
STATEMENT OF CHANGES IN EQUITY
Non-
distribut- Capital Accumu-
Share Share able redemption lated
capital premium reserve fund profits Total
R'000 R'000 R'000 R'000 R'000 R'000
Balance at
30 June 1999
Shares issued 1 - - - - 1
Arising on
consolidation - - 828 - - 828
Net profit
for the year - - - - 1 000 1 000
Dividends paid - - - - (454) (454)
Balance at
30 June 2000 1 0 828 0 546 1 375
Shares issued 113 7 387 - - - 7 500
Listing expenses - (982) - - - (982)
Reverse listing
adjustment 12 (5 719) - 48 - (5 659)
Net profit
for the period - - - - 538 538
Balance at
31 December 2000 126 686 828 48 1 084 2 772
Net profit for
the period - - - - 860 860
Balance at
30 June 2001 126 686 828 48 1 944 3 632
Net profit for
the period - - - - 678 678
Balance at
31 December 2001 126 686 828 48 2 622 4 310
COMMENTS
The directors are pleased with the results for the six months ended 31
December 2001. Overall the results compare favourably with the results of
the financial year ended 30 June 2001. The company's position in the
proprietary software solution markets is well established and growing.
Mr BF van Niekerk resigned as director and chairman. Mr GJ Oosthuizen has
been appointed as director, both with effect from 1 February 2002.
FINANCIAL
The headline earnings for the six-month period until 31 December 2001 rose
to 7,31 cents per share in comparison to 6,43 cents per share which was the
restated six months results to 31 December 2001.
A substantial increase in both turnover and gross margins is demonstrated
and this is the result of focused marketing and close control of all the
various financial aspects which influence the profitability of the company.
In terms of a call option the company was given at the time of the reverse
listing, the details of which were published in a Circular to Shareholders
on 25 October 2000, the directors exercised this option because these
entities are now profitable and the businesses of Integrear Abacus (Pty)
Limited and Integrear Indicium (Pty) Limited were thus procured on 1 July
2001. Integrear Limited now consists of four subsidiary companies, Integrear
Systemflo (Pty) Limited and Integrear Amica (Pty) Limited being the other
two in addition to those mentioned above.
PROSPECTS
The acquisition of these two companies brings new opportunities for
increased growth and profitability. They specialise in the area of Business
Intelligence and Business Optimisation software solutions. These areas of
expertise complement Integrear's existing business portfolio, and both
companies will be able to leverage off the existing Integrear client base
and bring new client relationships into the group.
The directors are confident that the experience which exists in the group,
particularly in terms of the expertise to build business solutions targeted
at a large potential market, and the healthy cash position, are factors
which will ensure continued growth, not only with relation to turnover and
profits, but also growth in value to the shareholders. Despite the negative
sentiment towards the Information Technology market in general, the
directors remain of the opinion that the company is in the position to
continue to demonstrate good results.
Post-balance sheet event
On 9 February 2002, one of the company's major clients, Saambou Bank, was
put under curatorship. The amount owed by Saambou Bank as at 31 December
2001 is R869 000. Discussions with management are ongoing and indications at
this stage are that the full amount will be paid.
Due to current uncertainties the directors cannot express an opinion on the
likelihood of future transactions with this client.
DIVIDEND
No dividend is declared for the period under review.
By order of the board
TJ Hill
Chairman/Managing Director
28 February 2002
Transfer secretaries Registered office
Mercantile Registrars Limited 265 West Avenue
11 Diagonal Street Centurion, 0157
Johannesburg, 2001
Directors: TJ Hill, L du Plessis*, LLS van der Watt*,
GJ Oosthuizen*
*Non-executive
www.integrear.com
